Silver Hits ₹2.35 Lakh: Is this the Right Time to Invest?

Key Takeaways 

• Silver prices on MCX rose nearly 1% to ₹2,35,102/kg on Thursday, April 30, as a weaker US dollar increased global demand for precious metals. 
   
• Silver had dropped to a one-month low in the previous session. Gold also fell to its lowest level since March 31 before recovering.

Silver prices recovered on Thursday, April 30, after hitting a one-month low a day earlier. The main reason for this rise was the weaker US dollar. When the dollar becomes weak, silver becomes cheaper for buyers in other countries, which increases demand and pushes prices higher.

MCX silver increased to ₹2,35,102 per kg, up nearly 1%. In global markets, spot silver also went up by 1% to $72.18 per ounce. However, there is still a concern. Crude oil prices are above $119 per barrel. High oil prices lead to inflation, and when inflation remains high, interest rates also stay high. This can slow down the rise in silver prices.

How will this affect the common people in India?

Silver is not only bought by investors in India. It is also used in jewellery, festivals, and in industries like electronics and solar energy. So when silver prices change, many people are affected.
 

On the positive side, if the US dollar continues to weaken, silver prices in India may rise further. This is good news for people who already have silver as an investment.

What Do Experts Say? Should You Buy Silver Now?

Experts say silver is currently influenced by two opposite forces. One factor is supporting prices, while the other is putting pressure on them.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, “Silver is getting support from safe-haven demand, but high crude oil prices are creating pressure because they keep interest rates high.” The US Federal Reserve recently kept interest rates unchanged. However, this was the most divided decision since 1992, with three officials voting against it. This shows that even the Fed is uncertain about the future.

There is more uncertainty as well. Kevin Warsh, who is believed to be Donald Trump’s preferred choice to lead the Federal Reserve after Jerome Powell, has cleared an important procedural step. A new Fed chief could change interest rate policies, which may strongly affect silver prices in the coming months.

Conclusion 

Silver’s rise to ₹2.35 lakh per kg on April 30 is a positive sign for investors. A weaker dollar is the main reason behind this increase. However, high oil prices and an uncertain interest rate outlook mean the path ahead may not be smooth. If you are planning to buy silver, keep a close watch on the dollar’s movement and any updates from the US Federal Reserve. Short-term price changes are likely to continue.

Frequently Asked Questions 

1. Will silver prices rise further if the US dollar keeps weakening right now?
Yes, a weaker US dollar usually supports silver prices. It makes silver cheaper for global buyers, increasing demand. However, factors like high oil prices and interest rates can still limit how much prices rise.

2. Should I buy, hold, or wait before investing in silver, given the current market situation?
It depends on your goal. If you already hold silver, you can consider holding. New buyers may wait for small dips, as short-term price fluctuations are expected due to global uncertainties.